Chapter II LICENSING OF WAREHOUSES

No person shall carry on the business of a warehouseman except under licence granted under this Act and in accordance with such terms and conditions thereof as may, from time to time, be prescribed.

1. (1) Every application for a licence under section 3 shall be made in the prescribed form to the prescribed Authority.
2. (2) The prescribed authority may, on receiving such application and on payment of such fees as may be prescribed, grant a licence.

1. (1) Before granting a licence the prescribed authority shall satisfy itself-
   • (a) that the warehouse is suitable for proper storage of the class or classes of goods in respect of which the licence has been applied for;
   • (b) that the applicant is financially sound;
   • (c) that the applicant has paid the fee prescribed for the licence and has also paid or given the prescribed security, if any.
2. (2) The Government may, by notification in the official Gazette, add to or alter the conditions under this section.

Every licence granted under section 4 shall be valid for the prescribed period, and may on application and payment of the prescribed fee, be renewed from time to time by the prescribed authority and for the prescribed period, provided the other conditions referred to in section 5 continue to be fulfilled.

If the prescribed authority refuses to grant or renew a licence under the foregoing provisions, it shall record its reasons for such refusal in writing and communicate the order to the applicant by forwarding a copy thereof.

1. (1) Every licence granted under section 4 or renewed under section 6 shall be liable to be suspended, cancelled or revoked either temporarily or permanently by the prescribed authority for valid reasons stated in writing and in particular if the warehouseman-
   • (a) has applied for being declared or been adjudicated as insolvent, or
   • (b) has parted, in whole or in part, with his control over the warehouse, or
   • (c) has ceased to conduct the business of such a warehouse, or
   • (d) had made unreasonable charges for the services rendered by him, or
   • (e) has in any other manner become incompetent to conduct the business of such warehouse, or
   • (f) has contravened, or failed to comply with, any of the conditions of the licence or any of the provisions of this Act or the rules made thereunder.
2. (2) If a licence is suspended, revoked or cancelled the prescribed authority shall make an entry to that effect in the licence.

1. (1) Before passing an order for suspension, revocation or cancellation under section 8, the prescribed authority shall give notice to the warehouseman stating the grounds on which it is proposed to suspend, revoke or cancel his licence and call upon him to show cause why the proposed action should not be taken.
2. (2) After considering the explanation, if any, of the warehouseman, the prescribed authority may pass such order as it deems just.

When a licence expires or is suspended, revoked or cancelled, the warehouseman shall cease to work as such and shall return the licence to the prescribed authority, who shall give reasonable time to the warehouseman to enable him to wind up the business or, who may acquire the business in the manner as prescribed.

1. (1) Where a licence granted to a warehouseman is lost, destroyed, torn, defaced or otherwise becomes illegible, the prescribed authority shall issue a duplicate licence on the application of the warehouseman and on payment of the prescribed fee.
2. (2) When a duplicate licence is issued, it shall be clearly stamped "Duplicate" and shall be marked with the date of issue of the duplicate and that of the original from the record of the office issuing the licence.